The larger the balance you carry on a credit card, the higher the utilization rate and that's what dings you on your score. Ideally you'll be using only a fraction of the credit extended to you. Even if you pay it off each month, your high balance is reported to to the Credit Reporting Agencies.

On the flip side, having a lot of accounts doesn't do you any favors either. It suggests to creditors that you are seeking credit anywhere you can get it and stirs fears that you might actually try using it all even when your history demonstrates you have not.

FuskieWho expects if you charge a lot of your available credit and pay it off each month, you will be able to get a credit increase that will allow you to keep your debt to credit ratio under control...

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